National

Tinubu approves pension reforms for DBS retirees

Adamu Jubril
President Bola Tinubu
President Bola Tinubu has approved a series of reforms aimed at enhancing the welfare of pensioners under the Defined Benefit Scheme (DBS), signaling a significant step forward in Nigeria’s pension administration.

In a statement issued by Olugbenga Ajayi, Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD), the reforms are described as a “milestone” in Nigeria’s ongoing pension reform efforts and align with the President’s Renewed Hope Agenda.

Among the approved measures are:

  • Immediate implementation of an extra-budgetary allocation to enforce new pension rates.
  • Pension harmonisation, to be fully incorporated into the 2026 pension budget.
  • Health insurance coverage for all DBS pensioners under the National Health Insurance Scheme (NHIS).
  • Inclusion of outstanding liabilities for NITEL/MTEL and defunct parastatal pensioners in the 2026 federal budget.

PTAD Executive Secretary, Tolulope Odunaiya, noted that these reforms followed a formal request to the Presidency for emergency funding to support critical pension improvements. She praised the President’s swift action, saying, “This move shows President Tinubu’s strong commitment to senior citizens’ welfare and marks a new era in DBS pension management.”

The reform package includes:

  • A new minimum pension rate of N32,000
  • Incremental increases of 10.66% and 12.95% for pensioners from defunct or privatised agencies
  • Harmonisation of pension rates across all DBS beneficiaries

Earlier in 2024, PTAD had already implemented the first pension increment of 20% to 28%, effective from January.

See also

In June, PTAD successfully disbursed N8.6 billion in pension arrears to 148,625 eligible pensioners. According to Ajayi, the payments reflect the approved N32,000 pension increase and were distributed as follows:

  • N5.7 billion to 59,342 pensioners under the Parastatals Pensions Department (PaPD)
  • N2.3 billion to 71,084 pensioners under the Civil Service Pensions Department (CSPD)
  • N310 million to 9,579 retirees under the Police Pension Department (PPD)
  • N276 million to 8,620 pensioners from the Customs, Immigration, and Correctional Services Pension Department

Odunaiya concluded, “We are grateful for the President’s leadership in prioritising the welfare of our retirees. This is a transformative moment for pension administration in Nigeria.”